Vaca Muerta's Neuquen Province Hits Production Record in May

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina's Neuquen province recorded a production output of 468,688 barrels of oil per day (BBL/d) in May, setting a new record for the province based on the Energy Secretary's numbers. The volumes were 19% higher than during the same period last year, showcasing the massive growth of Vaca Muerta, the nation's shale reservoir.

For May, the Neuquen province accounted for 62% of the nation's output.

Vaca Muerta is the world's second-largest shale gas and fourth-largest unconventional oil reservoir, located in the Mendoza, Rio Negro, and Neuquen provinces, with the latter representing by far the largest resources and output.

Shale oil production in Argentina has continued to grow, thanks to new developments in Vaca Muerta, going from 2.9% of the national production in 2014 to accounting for 58.5% of the nation's output as of 2025.

For Neuquen, shale oil production accounts for 94% of the 462,000 BBL/d produced in the first five months of the year.

However, production growth in Vaca Muerta seems far from stopping. Currently, private companies are eyeing the development of new oil and gas midstream capacity to meet the reservoir's growing production needs.

Among the most important projects for oil production is the Vaca Muerta Sur Oil pipeline and terminal, which includes the construction of a 437-kilometer pipeline in its first phase, connecting Allen in Neuquen with Punta Colorada in Rio Negro.

The pipeline would have a capacity of 550,000 BBL/d, with the option to expand to 700,000 BBL/d. It will be connected to a storage terminal in the Rio Negro province, from where Vaca Muerta's oil production can be exported through two monobuoys.

The construction of the project began in Q1 this year with an expected date for operations by mid 2027. The pipeline is foreseen to generate US$15 billion in crude exports per year.

If you are interested in learning more about this pipeline project, subscribers to IIR's Global Market Intelligence (GMI) Pipelines Project Database can click here for the related project reports.

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